NTPC Green Energy’s IPO Oversubscribed 2.5 Times

Telangana DISCOM Floats Tenders for 3 MW Solar Power Projects

Daily News Wrap-Up: India Adds 16 GW Solar Capacity in 9M 2024

CMPDI Invites Bids for 10 MW Solar Project at Mahanadi Coalfields

RERC Upholds Penalty for Failure to Comply with Renewable Energy Regulations

Hyundai to Source 118 MW Power from Fourth Partner’s Solar and Wind Projects

India Adds an Unprecedented 16 GW Solar Capacity in 9M 2024

Daily News Wrap-Up: UPNEDA Tenders 2 MW Rooftop Solar Projects

Maxeon Solar Modules Detained by US Customs Authority

Sungrow, TBEA, FIMER Dominate Solar Inverter Rankings in First Half of 2024

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/10/amazon_polly_71200.mp3?version=1728880480">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>In 2023, the off-grid solar sector had impacted 561 million people globally, with 253 million gaining basic electricity access and 132 million benefitting from higher levels, according to Off-Grid Solar Market Trends Report 2024, jointly prepared by the <a href="https://www.worldbank.org/en/home" target="_blank" rel="noopener">World Bank Group</a>, the <a href="https://www.esmap.org/" target="_blank" rel="noopener">Energy Sector Management Assistance Program</a>, and <a href="https://www.gogla.org/" target="_blank" rel="noopener">GOGLA</a>.
In Sub-Saharan Africa, off-grid solar accounted for 55% of all new electricity connections between 2020 and 2022, underlining its critical role in narrowing the electrification gap.
Sales and Market Growth
The report reveals that over 50 million off-grid solar products were sold in 2022 and 2023, surpassing the pre-COVID peak of 47 million units in 2019. Market turnover reached  $3.9 billion in 2022 and $3.8 billion in 2023, surpassing the previous $3.3 billion set in 2019.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-71202 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid.png" alt="GOGLA Offgrid" width="903" height="485" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid.png 903w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-300x161.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-768x412.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-650x349.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-624x335.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-600x322.png 600w" sizes="(max-width: 903px) 100vw, 903px" /></a>
The market for income-generating solar appliances has also expanded, with 1.76 million solar-powered fans and TVs sold in 2023, alongside 30,000 solar water pumps and refrigerators. While TV and refrigerator sales remained relatively stable, products like solar fans and water pumps experienced substantial growth due to increased demand from rural businesses and farms.
Innovation in Business Models
The report identifies a key trend in diversifying business models within the off-grid solar sector. Companies that have shifted their focus to higher-value products for middle- and high-income consumers or adopted innovative financing models—such as pay-as-you-go (PAYG)—have demonstrated stronger commercial performance.
PAYG has become a popular method for delivering off-grid solar products to lower-income households, allowing consumers to pay for solar products in small installments, often via mobile money. By 2023, 39% of all off-grid solar products were sold through PAYG financing, up from 24% in 2018. Larger solar home systems saw 96% of their sales via PAYG.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-71205 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2.png" alt="GOGLA Offgrid 2" width="903" height="441" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2.png 903w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2-300x147.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2-768x375.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2-650x317.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2-624x305.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/10/GOGLA-Offgrid-2-600x293.png 600w" sizes="(max-width: 903px) 100vw, 903px" /></a>
However, affordability remains a critical challenge for expanding off-grid solar to the most underserved populations. Only 22% of households without electricity can afford basic solar energy kits under the PAYG model. This percentage drops significantly in more remote or fragility, conflict, and violence (FCV) regions due to higher distribution costs and lower incomes. For more advanced Tier 2 systems, only 1% of households can afford the monthly PAYG payments, emphasizing the need for subsidies and innovative financial products to address the affordability gap.
In many regions, currency devaluations have made off-grid solar products less affordable. Prices for off-grid solar products rose in local currency terms, triggering higher default rates on PAYG payments. While the industry has responded with better credit management practices, collection rates remain low, at 62% in 2023, indicating persistent affordability constraints.
Investment Trends
The off-grid solar sector attracted $1.2 billion in investments from 2022 to 2023, with 20% of the funds provided in local currency to mitigate currency risks. This represents a significant increase from the $773 million invested during the previous two-year period. Most investments went to large, established companies, leaving smaller and mid-sized firms struggling to access affordable financing.
In fiscal year 2024, the World Bank lent a record $660 million to governments to scale up off-grid solar solutions, alongside an additional $733 million committed to results-based financing programs since 2018.
However, the report indicates that public financing alone is insufficient to meet the growing demand for off-grid solar products. To achieve universal access by 2030, an estimated $3.6 billion per year is needed to provide electricity to the 398 million people for whom off-grid solar is the least-cost solution.
India has also seen an uptick in off-grid solar tenders, mostly for solar water pumping systems, with entities like the <a href="https://www.mercomindia.com/creda-floats-tender-water-pumping-systems" target="_blank" rel="noopener">Chhattisgarh State Renewable Energy Development Agency</a>, <a href="https://www.mercomindia.com/bihar-off-grid-rooftop-solar/" target="_blank" rel="noopener">Bihar Renewable Energy Development Agency</a>, and <a href="https://www.mercomindia.com/seci-bids-off-grid-solar-water-pumps-india/" target="_blank" rel="noopener">Solar Energy Corporation of India</a> floating tenders for significant capacities.
In September, the Punjab Energy Development Authority<a href="https://www.mercomindia.com/punjab-invites-applications-for-20000-solar-pumps-under-kusum" target="_blank" rel="noopener"> invited</a> applications to install 20,000 surface and submersible solar pumps under the PM-KUSUM program.
In March, the Haryana Renewable Energy Development Agency <a href="https://www.mercomindia.com/haryana-contract-solar-water-pumps" target="_blank" rel="noopener">awarded</a> contracts to supply, install, and commission 24,484 solar water pumping systems under Component B of the PM-KUSUM Program.
India’s Potential Market Expansion 
The report said sales of solar lanterns and smaller solar home systems in India have declined due to improvements in grid electrification and rising interest rates in the microfinance sector. This has impacted affordability and demand for these products.
However, expanding solar solutions, including productive-use appliances like water pumps and refrigerators, could continue to drive economic growth in rural areas.
India’s potential market for solar water pumps is approximately 30.9 million units. However, only 23,000 units were sold in 2023, indicating a significant gap in market potential. The Compound Annual Growth Rate (CAGR) for solar water pumps is estimated to be 19.6%. If trends continue, total sales are expected to reach 354,000 units by 2030. To achieve universal access, an investment of $16 billion is required for solar water pumps in India.
In India, there is an estimated potential market of 37.9 million units for solar refrigerators. However, only 7,000 units were sold. The CAGR for solar refrigerators is relatively modest at 4.1%. Achieving universal access to solar refrigerators will require an investment of approximately $32.7 billion.
In India, affordability constraints prevent many rural households from accessing solar energy kits. Only 22% of the population without electricity can afford a basic solar energy kit using PAYG, according to the report.

Pay-as-You-Go Financing Powered 39% of Off-grid Solar Product Sales in 2023: Report

Here are some noteworthy cleantech announcements of the day from around the world:
The Ministry of Heavy Industries has <a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1806077" target="_blank" rel="noopener">notified</a> that the Production Linked Incentive (PLI) Program for the automobile and auto component industry has attracted a proposed investment of ₹748.5 billion (~$9.82 billion). Over five years, the target investment estimate was ₹425 billion (~$5.57 billion). The proposed investment of ₹450.16 billion (~$5.90 billion) is from approved applicants under the Champion OEM Incentive program and ₹298.34 billion (~$3.91 billion) from approved applicants under the Component Champion Incentive program. This PLI program for the automotive sector, the already launched PLI program for advanced chemistry cell, and Faster Adaption of Manufacturing of Electric Vehicles (FAME) are together expected to enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system. The PLI program for the automobile and auto component industry has drawn interest from Indian business groups and groups from countries including Japan, Germany, USA, UK, Republic of Korea, Ireland, France, Belgium, Netherlands, and Italy.
Tata Power Delhi Distribution Limited (Tata Power DDL) has <a href="https://tatapower-ddl.com/pr-details/199/2017286/tata-power-delhi-distribution-limited-partners-with-battery-smart-to-enable-a-robust-ev-infrastructure" target="_blank" rel="noopener">partnered</a> with Battery Smart to set up battery swapping stations for electric two and three-wheeler vehicles at various locations across North Delhi. Battery Smart is a provider of battery-as-a-service through its network of battery swapping stations. The partnership aims to leverage Tata Power DDL’s large power capacity and extensive infrastructure to establish more high-capacity swap stations at key locations to cater to the growing electric two and three-wheeler vehicle market. The first battery-swapping station is live and operational at Azadpur. Tata Power DDL and Battery Smart hope to support the  ‘Switch Delhi’ campaign via affordable battery swapping infrastructure.
Abu Dhabi-based renewable energy company Masdar <a href="https://news.masdar.ae/en/News/2022/03/16/05/55/Masdar-celebrates-groundbreaking-on-230-MW-solar-plant-in-Azerbaijan" target="_blank" rel="noopener">announced</a> the formal start to the construction of its 230 MW Garadagh solar project in Azerbaijan. The project is expected to start commercial operation in 2023. The project will help generate half a billion kilowatt-hours of electricity annually, enough to meet the needs of more than 110,000 houses and reduce emissions by more than 200,000 tons a year. The Abu Dhabi Fund for Development is a key finance partner for the project. Masdar also signed agreements related to developing additional clean-energy projects across the country. Azerbaijan is targeting increasing the proportion of its installed power capacity coming from renewable sources to 30% by 2030.
Tata Consultancy Services (TCS) has been <a href="https://www.tcs.com/western-power-engages-tcs-help-deliver-more-resilient-energy-supply-west-australians" target="_blank" rel="noopener">selected</a> as a strategic partner by Western Power to assist in digitally transforming its software systems as part of the business’s drive to deliver a cleaner and more resilient energy supply to West Australians. Western Power is a state government-owned energy company. The partnership will support Western Power’s corporate strategy towards a modular grid that is innovative and flexible through new tech plugs in and out of the grid. TCS will also work with Western Power on a two-year pilot to aggregate a network of solar-powered homes that collectively generate and store energy, smoothing out the supply and demand for electricity.
Jaguar Land Rover will <a href="https://media.jaguarlandrover.com/news/2022/03/jaguar-land-rover-gives-second-life-i-pace-batteries" target="_blank" rel="noopener">partner</a> with Pramac to develop a portable zero-emission energy storage unit powered by second-life Jaguar I-PACE batteries. The Off-Grid Battery Energy Storage System (ESS), Pramac’s technology – features lithium-ion cells from Jaguar I-PACE batteries taken from prototype and engineering test vehicles and supplies zero-emission power where access to the mains supply is limited or unavailable. According to the automaker, the flagship system claims to have a capacity of up to 125 kWh, which is more than enough to fully charge Jaguar’s all-electric I-PACE performance SUV or power a regular family home for a week. The partnership is the first in Jaguar Land Rover’s plans to create new circular economy business models for its vehicle batteries. As part of its commitment to net-zero status by 2039.
Pilanesberg Platinum Mines, a subsidiary of Sedibelo Platinum, has <a href="https://www.sedibeloplatinum.com/documents/media-release/2022/Announcement-of-Preferred-bidder-Renewable-Energy-Pilanesberg-Platinum-Mine-11-03-22.pdf" target="_blank" rel="noopener">appointed</a> EPC contractor juwi and  Sturdee Energy consortium as preferred bidders to supply renewable energy to the mining operation in South Africa. The renewable energy program will take the form of two projects, the first being a power purchase agreement for a combination of solar and wind systems to power the 40 MW mine load via a wheeling arrangement from two separate sites. This project will supply 55-60% of the mine’s energy needs and begin operation in 2024. The second project is the development and construction of a 35 MW solar project at or adjacent to the mine for the direct provision of power to meet the mine’s growing energy needs and is planned to commence operation in 2026.
Plug and play solar systems manufacturer Bboxx <a href="https://www.bboxx.com/news/flexx-by-bboxx-launched/" target="_blank" rel="noopener">launched </a>two new clean energy products to add to their existing roster. Flexx10 is an affordable ‘plug and play’ portable solar lantern designed for rural customers and those on the move. The product is also capable of charging mobile phones. Flexx10 is an upfront cash sales product. Flexx40 is a pay-as-you-go token-based multi-light solar system designed for rural customers at the bottom of the energy pyramid, with a demand for lighting applications and mobile phone charging. The system comes with dimmable LED light bulbs, allowing customers to control their energy usage. The products will be launched in Rwanda and Kenya before expanding to other markets in subsequent months, including the Democratic Republic of Congo.

Daily News Wrap-Up: PLI for the Auto Sector to Accelerate Investments for EVs

The New &amp; Renewable Energy Development Corporation of Andhra Pradesh Ltd (<a href="http://nredcap.in/Default.aspx" target="_blank" rel="noopener">NREDCAP</a>) has issued a tender for the supply, installation and commissioning of 1,490 solar lanterns and  235 solar street lights in nine villages of Durgi and Veldurthy mandals located in the state’s in Guntur District.
The tender also includes six solar water pumping systems of 5 Horse Power (HP) and two solar water pumping system of 1 HP, one 2,000 Liters Per Hour (LPH) solar Reverse Osmosis (RO) system, and three 1,000 LPH solar RO systems, seven 200 LPH solar RO systems and four 5 kW solar rooftop system.
The last date for bid submission is December 10, 2018. Technical bids will open on the same date.
To apply for the tender, the suppliers and manufacturer should have valid test certificates for all components of solar gadgets from the Ministry of New and Renewable Energy (MNRE) or any MNRE authorized test centres.
They should also have a turnover of ₹200 million (~$2.83 million) during last three years. The Earnest Money Deposit (EMD) for the tender is ₹ 250,000(~$ 3537.82).
The work orders will be issued to the bidder who quotes lowest price for the entire project consisting of 8 models of solar gadgets of different types in the nine villages. All the solar gadgets, with all the components, should be under guarantee or warranty for a period of five years from the date of supply. The successful bidder will also have to establish a service centre in Guntur District.
In case of delay in supply of solar gadgets, a penalty of one percent on the cost of the systems per week will be levied. The maximum penalty can be 5 percent.
In January 2018, Mercom had reported on the <a href="http://nredcap.in/" target="_blank" rel="noopener">NREDCAP</a> tender to procure and set up 5,000 solar-powered water pumps in the state as part of the Off-Grid and Decentralized Solar Applications program.

NREDCAP Issues Tender for Off-Grid Solar Gadgets in Guntur District of Andhra Pradesh

solar-lantern

Get the most relevant India solar and clean energy news.

RECENT POSTS